The Consumer Financial Protection Bureau’s proposed changes to the Home Mortgage Disclosure Act (HDMA) would improve the precision of HMDA data definitions and clarify reporting procedures. These changes would enhance the accuracy of HMDA data and its value in assessing whether lenders are meeting community credit needs and in exposing housing and lending discrimination.

The Home Mortgage Disclosure Act (HDMA), which was originally enacted in 1975, requires many lenders to report information about the home loans for which they receive applications or that they originate or purchase. The public and regulators can use the information to monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment so as to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns.

Consumer Action joins coalition advocates in supporting the Consumer Financial Protection Bureau’s proposed HDMA technical clarifications with the aim of improving the accuracy and reliability of HMDA data to ensure lenders are fairly meeting the needs of communities.